Tipu Relative Strength Index (RSI) is the modified version of the original RSI published by MetaQuotes here.
- Customizable Buy/Sell alerts, push alerts, email alerts, and visual on-screen alerts.
- Marked overbought and oversold levels.
- Three colors RSI that marks the normal, oversold and overbought levels.
- An easy to use Panel that shows the trend + signal of the selected timeframes.
- Show RSI values for the selected timeframes.
- Customizable panel. The panel can be moved to any place on the chart or minimized to allow more space.
The relative strength index (RSI) is an oscillator devised by J. Welles Wilder in his famous book New Concepts in Technical Trading Systems in 1978.1 He also introduced Parabolic SAR (see Tipu Parabollic SAR Panel), Average True Range and the Directional Movement Concept (ADX).
How to Use
- Uptrend/Downtrends - RSI may be used to detect trending markets. For example, the RSI may stay above the mid line 50 in an uptrend (or between 40 and 80).2 You may use RSI as a compliment to the Tipu Trend indicator.
- Top and Buttoms - RSI may help in identifying the tops around the overbought readings (usually above 70), and the bottoms around the oversold area (usually below 30).
- Divergence - divergence occurs when RSI directional movement is not confirmed by the price action. For example, a bullish divergence occurs when EURUSD makes lower low but RSI makes higher low. This means that EURUSD is losing momentum and a bullish correction is possible.
- Other uses - Failure Swing, Support and Resistance levels, Chart Formation
- Full description of RSI is available here.
- U — average number of positive price changes.
- D — average number of negative price changes.
- Show Panel?: visibility settings, select true/false to show panel (need Tipu Panel added to the chart).
- Short Name for the Panel: short name for the panel heading on Tipu Panel
- Panel Display - settings for what to display in Tipu Panel.
- Buy/Sell signal will display "B" if RSI falls below oversold level, and "S" if RSI rises above overbought level.
- RSI plot will display RSI values on the chart.
- RSI Period- settings for RSI.
- Applied Price - settings for RSI.
- Overbought - settings for RSI.
- Oversold - settings for RSI.
- Alert Shift: candle delay for the signal, enter 1 if you want the alert sent after one candle to be passed.
- Alert Mobile: select true/false to get push notification on your device, make sure the device settings are correct here.
- Alert onscreen on change: select true/false to get alert on the terminal, this alert is shown in a separate window.
- Alert email on change: select true/false to get email alerts, make sure email settings are correct here.
1 Wilder, J. (1978). The Parabolic System. In New concepts in technical trading systems. Greensboro, N.C.: Trend Research.
2 Cardwell, A. (1999). Relative Strength Index: Forecasting and Trading Strategies. John Wiley & Sons Canada, Limited.